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Agreement for Inventory Financing

 

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Title:

Agreement for Inventory Financing

Entities:

Chase Manhattan Bank; Citibank, NA; Ingram Micro Inc.; Lexmark International, Inc.; Pc Connection Inc; PC Connection, Inc.

Date:

2004

Size:

Preview shows 34KB of 181KB total

Price:

$53

ID:

#1703187

 

 

► Miscellany ► Agreements ► Agreements for ► Agreements for Inventory Financing
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PC Connection, Inc.

 

Merrimack Services Corporation

 

GovConnection, Inc.

 

MoreDirect, Inc.

 

AGREEMENT FOR INVENTORY FINANCING

 

Table of Contents

 

Section 1. DEFINITIONS; ATTACHMENTS

   2

1.1.    Special Definitions

   2

1.2.    Other Defined Terms

   8

1.3.    Attachments

   8

Section 2. CREDIT LINE; FINANCE CHARGES; OTHER CHARGES

   9

2.1.    Credit Line

   9

2.2.    Product Advances

   9

2.3.    Finance and Other Charges

   10

2.4.    Customer Account Statements

   10

2.5.    Shortfall

   11

2.6.    Application of Payments

   11

2.7.    Prepayment and Reborrowing By Customer

   11

Section 3. CREDIT LINE ADDITIONAL PROVISIONS

   11

3.1.    Power of Attorney

   11

Section 4. SECURITY ? COLLATERAL

   12

4.1.    Grant

   12

4.2.    Further Assurances

   12

Section 5. CONDITIONS PRECEDENT

   12

5.1.    Conditions Precedent to the Effectiveness of this Agreement

   12

5.2.    Conditions Precedent to Each Advance

   13

Section 6. REPRESENTATIONS AND WARRANTIES

   14

6.1.    Organization and Qualifications

   14

6.2.    Rights in Collateral; Priority of Liens

   14

6.3.    No Conflicts

   14

6.4.    Enforceability

   14

6.5.    Locations of Offices, Records and Inventory

   14

6.6.    Fictitious Business Names

   15

6.7.    Organization

   15

6.8.    No Judgments or Litigation

   15

6.9.    No Defaults

   15

6.10.    Labor Matters

   15

6.11.    Compliance with Law

   15

6.12.    ERISA

   15

6.13.    Compliance with Environmental Laws

   16

6.14.    Licenses and Permits

   16

6.15.    Investment Company

   16

6.16.    Taxes and Tax Returns

   16

6.17.    Affiliate/Subsidiary Transactions

   16

 

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6.18.    Accuracy and Completeness of Information

   17

6.19.     Recording Taxes

   17

6.20.    Indebtedness

   17

6.22.    Security Interest

   17

Section 7. AFFIRMATIVE COVENANTS

   17

7.1.    Financial and Other Information

   17

7.2.    Location of Collateral

   18

7.3.    Changes in Customer

   18

7.4.    Legal Entity Existence

   19

7.5.    ERISA

   19

7.6.    Environmental Matters

   19

7.7.    Collateral Books and Records/Collateral Audit

   19

7.8.    Insurance; Casualty Loss

   20

7.9.    Taxes

   20

7.10.    Compliance With Laws

   21

7.11.    Fiscal Year

   21

7.12.    Maintenance of Property

   21

7.13.    Collateral

   21

7.14.    Subsidiaries

   21

7.15.    Financial Covenants; Additional Covenants

   21

7.16.    Joint and Several Guaranty

   21

Section 8. NEGATIVE COVENANTS

   23

8.1.    Liens

   23

8.2.    Disposition of Assets

   23

8.3.    Changes in Customer

   23

8.4.    Guaranties

   23

8.5.    Restricted Payments

   23

8.6.    Affiliate/Subsidiary Transactions

   24

8.7.    ERISA

   24

8.8.    Additional Negative Pledges

   24

8.9.    Storage of Collateral with Bailees and Warehousemen

   24

8.10.    Indebtedness

   24

8.11.    Loans

   24

Section 9. DEFAULT

   24

9.1.    Event of Default

   24

9.2.    Acceleration

   26

9.3.    Remedies

   26

9.4.    Waiver

   27

Section 10. MISCELLANEOUS

   27

10.1.    Term; Termination

   27

10.2.    Indemnification

   27

10.3.    Additional Obligations

   28

10.4.    LIMITATION OF LIABILITY

   28

10.5.    Alteration/Waiver

   28

10.6.    Severability

   28

10.7.    One Loan

   28

10.8.    No Merger or Novations

   29

10.9.    Paragraph Titles

   29

10.10.    Binding Effect; Assignment

   29

10.11.    Obligations

   29

10.12.    Notices; E-Business Acknowledgment

   29

10.13.    Counterparts

   31

10.14.    ATTACHMENT A MODIFICATIONS

   31

10.15.    SUBMISSION AND CONSENT TO JURISDICTION AND CHOICE OF LAW

   31

10.16.    JURY TRIAL WAIVER

   32

 

ii


AGREEMENT FOR INVENTORY FINANCING

 

This AGREEMENT FOR INVENTORY FINANCING (as amended, supplemented or otherwise modified from time to time, this ?Agreement?) is hereby made as of the 31st day of October, 2002 by and among IBM Credit Corporation, a corporation duly organized under the laws of the State of Delaware, with a place of business at 1500 RiverEdge Parkway, Atlanta, GA 30328 (?IBM Credit?), Merrimack Services Corporation a corporation, duly organized under the laws of the State of Delaware, with its principal place of business at 730 Milford Road, Merrimack, NH 03054 (?Merrimack?), GovConnection, Inc. a corporation, duly organized under the laws of the State of Maryland, with its principal place of business at 7503 Standish Place, Rockville, MD 20855 (?GovConnection?), and MoreDirect, Inc. a corporation, duly organized under the laws of the State of Florida, with its principal place of business at 7300 N. Federal Hwy., Suite 200, Boca Raton, FL 33487 (?MoreDirect?) (Merrimack, GovConnection and MoreDirect are referred to herein as a ?Customer? or, collectively, the ?Customers?) and PC Connection, Inc., a corporation, duly organized under the laws of the State of Delaware, with its principal place of business at 730 Milford Road, Merrimack, NH 03054 (?PC Connection?),. Notwithstanding the foregoing, and unless otherwise indicated, any obligation of a ?Customer? or ?Customers? herein shall be the joint and several obligation of Merrimack, GovConnection and MoreDirect.


 

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